Enhancing personal credit quality at joint stock commercial bank for investment and development of vietnam

STATE BANK OF VIETNAM BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES -   - GRADUATION THESIS ENHANCING PERSONAL CREDIT QUALITY AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – QUANG TRUNG BRANCH Student : Hoang Thi Thanh Huyen Class : K21ATCB Academic year : 2018 – 2022 Student ID : 21A7510058 Supervisor : Ms Pham Thi Hoang Anh (Assoc Prof PhD) Ha Noi, May 2022 i Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126212371000000 STATE BANK OF VIETNAM BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES -   - GRADUATION THESIS ENHANCING PERSONAL CREDIT QUALITY AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – QUANG TRUNG BRANCH Student : Hoang Thi Thanh Huyen Class : K21ATCB Academic year : 2018 – 2022 Student ID : 21A7510058 Supervisor : Ms Pham Thi Hoang Anh (Assoc Prof PhD) Ha Noi, May 2022 i BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS CERTIFICATE OF ORIGINALITY I would like to guarantee that the thesis "Enhancing personal credit quality at Joint Stock Commercial Bank for Investment and Development of Vietnam - Quang Trung branch" is my own research work, under the support of my supervisor - Assoc.Prof.PhD Pham Thi Hoang Anh and not copied from any other work The information for reference and collected data in the thesis have clear origins and are cited fully and explicitly I take all responsibility if there is fraud detection! Ha Noi, May 2022 Author Hoang Thi Thanh Huyen Student: Hoang Thi Thanh Huyen – ID: 21A7510058 i BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS ACKNOWLEDGEMENTS First of all, I would like to express my sincere and deep gratitude to Ms Pham Thi Hoang Anh - who patiently and enthusiastically guided me throughout the process from the time I did the assignment to the completion of the thesis Her orientations as well as timely comments and suggestions have contributed significantly to the success of the thesis It is a great honor for me to have her devoted guidance I also give my thanks to the teachers of Banking Academy, especially the teachers of Faculty of Foreign Languages, who not only gave me a solid foundation of knowledge, but also inspired me positively in the teaching process Thank you teachers as well as friends who have accompanied me during four meaningful years of university I also express my deep gratitude to the Board of Directors and the staff of the Personal Customer Department of BIDV Quang Trung who enthusiastically supported and trained me during my internship and provided sufficient information and data to help me complete the thesis in the most effective way Last but not least, I would like to sincerely thank my parents, brothers, sisters and friends for being by my side and giving me strong motivation to overcome the most difficult times Due to the limitations of knowledge as well as practical experience, the thesis cannot avoid certain shortcomings I look forward to receiving feedback from teachers so that I can complete my thesis to the best version Student: Hoang Thi Thanh Huyen – ID: 21A7510058 ii BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS TABLE OF CONTENT CERTIFICATE OF ORIGINALITY i ACKNOWLEDGEMENTS ii TABLE OF CONTENT .iii LIST OF ABBREVIATIONS vi LIST OF TABLES vii LIST OF FIGURES viii ABSTRACT ix CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Background of the study 1.3 Objective of the study 1.4 Significance of the study 1.5 Scope and limitation of the study 1.6 Definition of terms 1.7 Structural organization of the study CHAPTER 2: LITERATURE REVIEW AND THEORETICAL FRAMEWORK 2.1 Literature review 2.2 Theoretical framework 2.2.1 Overview of personal credit activities at commercial banks 2.2.2 Personal credit quality at commercial banks 16 Student: Hoang Thi Thanh Huyen – ID: 21A7510058 iii BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS CHAPTER 3: RESEARCH METHODOLOG Y 25 3.1 Locale of the study 25 3.2 Research methodology 25 CHAPTER 4: FINDINGS AND DISCUSSION 28 4.1 Business performance at BIDV Quang Trung in the period from 2019 to 2021 28 4.1.1 Capital mobilization 28 4.1.2 The use of capital 31 4.1.3 Business results 34 4.2 The reality of personal credit quality at BIDV - Quang Trung branch for the period 2019 - 2021 35 4.2.1 Outstanding personal credit 35 4.2.2 Non-performing loans and Overdue debt 37 4.2.3 Provisions for credit losses 39 4.2.4 Rate of return from personal credit 39 4.2.5 Highlights in the personal credit product package 42 4.3 General assessment of personal credit quality at BIDV Quang Trung 43 4.3.1 Achievements 44 4.3.2 Drawbacks 44 4.3.3 Causes of limitations 45 CHAPTER 5: CONCLUSION AND RECOMMENDATION 49 5.1 Orientation for developing personal credit quality at BIDV - Quang Trung branch 49 Student: Hoang Thi Thanh Huyen – ID: 21A7510058 iv BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS 5.2 Solutions to enhance personal credit quality at BIDV - Quang Trung branch 49 5.3 Recommendations 50 5.3.1 Recommendation to the Government 54 5.3.2 Recommendation to the State Bank of Vietnam 54 5.3.3 Recommendation to the Head Office of Bank for Investment and Development of Vietnam 54 CONCLUSION 56 REFERENCES Student: Hoang Thi Thanh Huyen – ID: 21A7510058 v BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS LIST OF ABBREVIATIONS Abbreviation Meaning BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam SBV State Bank of Vietnam MSB Vietnam Maritime Commercial Join Stock Bank CBs Commercial Banks NPLs Non-performing Loans ATM Automated Teller Machine H.O Head Office CIC Credit Information Center Student: Hoang Thi Thanh Huyen – ID: 21A7510058 vi BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS LIST OF TABLES Table 4.1: Business results of BIDV - Quang Trung branch (2019-2021) 28 Table 4.2: BIDV Quang Trung's capital mobilization (2019 - 2021) 30 Table 4.3: Outstanding personal credit (2019-2021) 35 Table 4.4: Non-performing loan of BIDV Quang Trung (2019-2021) 37 Table 4.5: Overdue debt of BIDV Quang Trung (2019-2021) 38 Table 4.6: Loan loss provision ratio of BIDV Quang Trung (2019-2021) 39 Table 4.7: Profit from personal credit of BIDV Quang Trung (2019-2021) 40 Student: Hoang Thi Thanh Huyen – ID: 21A7510058 vii BANKING ACADEMY FOREIGN LANGUAGE FACULTY GRADUATION THESIS LIST OF FIGURES Diagram 4.1: Capital mobilization by customer types ( 2019-2021) 31 Diagram 4.2: Outstanding credit of BIDV Quang Trung (2019 - 2021) 32 Diagram 4.3: Outstanding credit by customer types 33 Diagram 4.4: Profit before tax of BIDV Quang Trung (2019-2021) 34 Diagram 4.5: Outstanding personal credit by terms 36 Diagram 4.6: NPL and Overdue debt ratio of BIDV Quang Trung (2019-2021) 38 Diagram 4.7: Profit from personal credit of BIDV Quang Trung (2019-2021) 40 Diagram 4.8: Return rate on personal credit of BIDV Quang Trung 42 Student: Hoang Thi Thanh Huyen – ID: 21A7510058 viii